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RBA keeps interest rates on hold
Released 4 October 2011

The Reserve Bank of Australia (RBA) has kept interest rates steady at 4.75 per cent.   

The Housing Industry Association (HIA) said a cut to interest rates would have been the appropriate action given current global as well as domestic economic circumstances.

HIA Chief Economist Harley Dale said there are a myriad of factors abroad and at home that are weighing heavily on confidence and that is increasingly at risk of further derailing domestic economic activity.

"Now is the time to act to reduce that risk.”

He said in times of heightened inflationary risk, which we don't presently face, much is always made of the need for the RBA to be pre-emptive and hike rates.

“Right now there is a pre-emptive need to cut rates. It's an entirely appropriate policy decision in late 2011," he added.

The official cash rate has remained steady throughout 2011, with the last interest rate movement 25 basis points almost 12 months ago in November 2011.